EXPOSED Scandal at Plot One: State House In $ 1 Billion Contracts Scam

Dear Editor,
Allow me space in your esteemed on line publication to expose some of the rot that is being perpetuated by some very senior elements in the so called corruption allergic PF government and relatives of the first family, to be specific President Sata’s son, Mulenga.
From the outset I would like to say that the information contained herein is very correct and can be verified independently.
For the purposes of my safety please withhold my real identity for fear of reprisals from some of these ruthless people in the PF government. You can call me Nsanje Vaa.
Since the function of the Road Development Agency (RDA) was moved to State House, there has been a well choreographed and systematic plunder of national resources through specific and single sourced companies that have links with the President, Michael Chilufya Sata, his son Mulenga Sata and other senior government ministers like Wynter Kabimba.
In fact, part of the reason that Deputy Finance minister Miles Sampa quit government for a few hours last week before he was coerced back was because of the manner in which such kick backs on contracts were being shared amongst a few people like his superior Minister Alexander Chikwanda, leaving him on the sidelines.
Some senior officials at the RDA and National Construction Council (NCC) are particularly incensed by two Chinese firm that has literary been hand – picked and favored by the first family with the awarding of contracts worth over US $ 1Billion to one firm in a space of less than one year, much to the chagrin of other competitors.
At the centre of the scandal which has rocked the construction industry and has riled some senior government officials who are also fed up of the dirt swirling at Plot 1 is the Chinese firm CHINA JIANGXI and its director Fu Zhi Liang. And another firm run by a Mr. Shu.
These corrupt Chinese businessmen are in cahoots with President Sata and his son Mulenga, who they have been using to divert billions of kwacha for their own personal gain, and to raise money for the many stupid and useless by-elections engineered by the PF.
Angry sources at State House have also complained that Mr. Fu and Mr. Shu have been given unlimited access to Plot 1 and they walk in and out any time they want, and can see the Head of State even three times a day without question.
Their close associates and friends have also been complaining about the manner they have been openly showing off about their links with the first family and the President himself.
Some of these unholy alliances started soon after the PF assumed power, when the overzealous new government cancelled the NAPSA project in Lusaka accusing the managers of gross corruption. Apparently one of the major construction companies owned by a Mr. Shu was in that case also expected to face the wrath of government through legal suits over graft. Mr. Shu’s firm is also involved with the refurbishment of Society House.
According to very impeccable sources, Mr. Shu pleaded with Mulenga Sata to arrange a meeting with President Sata to save his firm from collapse. Following the “successful meeting” where some other deals were brokered, Mulenga Sata was rewarded very well.
As gratification, Mr. Shu has since purchased a house for Mulenga Sata, Number 4048 Nyimba road in Sunningdale Kabulonga in Lusaka worth K6 Billion. The house was bought off from a Mr. Guy Phiri who works for Engen, an oil firm. Mr. Mulenga Sata has since razed the original house to the ground, and has built a new ultra modern mansion using an Egyptian contractor.
Mr. Shu is the same contractor who gave two vehicles to Mulenga Sata, a matter which invited a probe by the Drug Enforcement Commission (DEC) but which investigation was later dropped.
Mr. Shu has further been awarded to construct Chalimbana University which was recently upgraded by President Sata using the connection of his son Mulenga.
The other Chinese firm, CHINA JIANGXI has also attracted a lot of angry comments from stake holders in the construction industry who have threatened to continue exposing the rot going on at very high government level,
For example, CHINA JIANGXI has angered some senior managers and board members at ZESCO after they were instructed to sign a US$280 million contract for the construction of power lines. This was done without following the legal tendering project. In this deal, Mulenga Sata is expected to get 10 percent while President Sata is to get another 10 percent.
This incident is one of many that caused immediate past Chairman Fr Frank Bwalya to abdicate his post.
CHINA JIANGXI, without a fair and competitive tender procedure has also dubiously been offered and signed for road contracts worth US$ 350 million for road projects in Chipata, Lundazi and Kitwe. The first family is also expected to get a 20 percent cut.
Another project which was signed between RDA and CHINA JIANGXI literally given on a silver platter even before it was advertised is the building project for the new government offices and residential houses for the new Muchinga province worth US$50 million.
Officials from RDA advertised the tender in the press to blindfold the public when the contract was already signed sealed and delivered.
Recently, CHINA JIANGXI was again given a whooping US$ 546 million tender to build a new terminal at the Kenneth Kaunda International airport. Fourteen other companies which tendered at even lower and better terms were deliberately sidelined on flimsy technicalities.
According to a submission analysis taken, the tender was given to CHINA JIANGXI under a hastily put together consortium of firms which should have been disqualified because it did not meet even the most minimum of qualifications to do such a big job.
The names of the companies in the consortium are as follows: Asphalt Roads and M and S Aluminum International Consultants for Architectural and Engineering (these are companies owned by a Mr. Joseph Mwewa). CAAC for Local architectural and Quantity Surveying, Sphinx Structural and Civil, Electrical, Mechanical and Surveying- Zulu Burrow and Financial Consultants- AMG.
CHINA JIANGXI as a matter of requirement and pre-condition for awarding of the contract should have had assignments of similar nature and complexity in the past five years with values of not less than US$ 500 million, however, investigations reveal that projects undertaken fell under the prescribed threshold while their scope of projects was just residential roads, dams and bridges.
There are no letters of association between the various parties, specifically between CAAC and Sphinx (because of the architectural consultancy alluded to in the consortium list, neither is there a letter of association between Zulu Burrow and CAAC). A company called MLN associates who are quantity surveyors are not part of the said consortium but are included in the technical submission.
Another glaring irregularity is that the power of Attorney is not valid as it did not indicate the names of firms to which the signatories represent.
Other irregularities are that the company Sphinx which is defined in the consortium as architects and quantity surveyors were in fact not quantity surveyors. Sphinx is actually not a corporate name but a registered business name.
Sphinx according to the technical proposal tendered, is supposed to have majority of the key professional staff proposed to be permanent employees of the firm (CAAC) and have an extended and working relationship. However, investigations seem to suggest that there has never been such working relationship as they have never done any projects together. Further, Sphinx does not have the minimum required working experience of five years.
To sum it up all, according to the requirement of experience on assignments of similar nature, Sphinx do not have hotel, office, and retail or airport experience.
In another scandal by another high ranking PF official, Justice minister Wynter Kabimba , as if in competition with the first family has also been busy wheeling and dealing with another construction firm SINO HYDRO, who are his clients at his law firm.
Mr. Kabimba has influenced the tender worth US$ 103,808 313.65 for the upgrading of the Mpika- Nabwalya- Mfuwe road to SINO HYDRO at the expense of 14 others who bided, The least expensive CHICO which bided at US$93,694,925.58 was sidelined. The Chingola- Kitwe duo- carriage way project was also in very unclear circumstances offered to the same firm with Mr. Kabimba’s hand also deep in the deal. They have already moved on site.
SYNO HYDRO which has very little experience in road construction is currently on site constructing the Itezhi -Tezhi power plant and the Kariba North bank.
The Botswana government ejected the firm from doing business after carrying out below standard and shoddy works about two years ago.
I am very ready to offer very explicit evidence to show to the Zambian public over the manner that this government has with impunity exploited and ravaged our resources for the benefit of a few selfish individuals at the expense of the suffering masses.
Not everyone in the PF government has their hands soiled, but it remains the case of one rotten Peanut chewed together with many good ones, the mouth reflex will be to regurgitate or eject everything.
In the spirit of national service, I shall be back
Nsanje Vaa.

Posted by Editor (online) on May 8, 2013. Filed under HEADLINES. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry